As the old adage goes, save more than you spend and you shall never go broke! Of course this is much easier said than done. Since the deep recession we experienced just a few years back, consumers have been struggling to right their financial ships. It’s difficult enough to pay the bills on time let alone fund our retirement accounts and savings accounts. However, the problem with this argument is that potential savers will always avoid putting away extra money, thus delaying retirement for years or maybe even indefinitely. You might be young now, in your 20’s or 30’s, but retirement age will come sooner than you think. Let compound interest take effect and you will be glad that you started saving at a young age.
Utilizing a time deposit or fixed term savings can be a great low-risk way of saving money for your future. While there are minimum fees for these types of accounts, they are great for people around the world who want to own a mix of currencies. Also, you can store your money anywhere from one to twelve months, this is especially nice because the money isn’t locked so long that you are unable to access it in case of an emergency. Should you find yourself in an absolute emergency and need to access the funds, you can still be rest assured that you have the ability provided you are willing to pay an early termination fee.
Any type of 401k and IRA account is always a smart and safe investment for your future. If you have an employer that offers a 401k then you should act quickly to take advantage of it. If you employer offers a matching contribution then my advice would be to invest the minimum in order to get the full matching contribution. Anything less than that would be like throwing away free money. Seems like a no-brainer, but it’s amazing how few people max out their retirement contributions available to them. If you are already maxing out a 401k, then consider opening a Roth or Traditional IRA. Both of these accounts have tax benefits to them. A traditional IRA is great for people who feel their income and tax bracket will be higher now than in retirement. Much like a 401k you contribute pre-tax funds to an account, and the interest and withdrawals are taxed once you hit eligible retirement age. A Roth is sort of like a brokerage account. You invest post-tax money, but all of your withdrawals are tax free!